SpaceX to buy key spectrum that could help Starlink Mobile become major US cell carrier

SpaceX is aiming to challenge existing US mobile networks with a mix of low-band spectrum and the 2 GHz spectrum utilized by its Starlink Gen2 satellites. The company has secured a deal to acquire a nationwide low-band spectrum license portfolio, encompassing up to 14 megahertz of spectrum within the 800 MHz band. This acquisition allows SpaceX's Starlink Mobile to potentially emerge as a major cellular carrier in the United States.

The transaction, pending FCC approval and other standard closing conditions, was secured from telecom investment firm Grain Management, which had previously purchased the licenses from T-Mobile. In its FCC filing, SpaceX outlined plans to establish its own terrestrial infrastructure using standard wireless equipment, such as antennas on towers, rooftops, and other structures, to ensure consistent signal coverage.

Specific financial details of the agreement have not been disclosed. SpaceX previously obtained approval from the Federal Communications Commission (FCC) to launch an additional 15,000 satellites optimized for 2 GHz spectrum globally, which will enable high-speed service to unmodified devices worldwide. This move, combined with the newly acquired low-band spectrum, could result in a hybrid satellite-terrestrial network.

SpaceX's 800 MHz spectrum, widely supported by existing mobile devices, could facilitate connection without the need for device upgrades. According to MarketWatch, shares of major wireless operators, including Verizon, AT&T, and T-Mobile US, experienced declines following the news.